VAT Returns

What does a VAT accountant do?

They register you if you need to be registered, choose a scheme that fits, keep digital records, and file each return through MTD-compatible software. They reconcile VAT to the books so the box numbers match the bank. They do not run customs litigation from a monthly add-on.

Most small businesses are on standard accounting and calendar quarters. Flat Rate, cash accounting and partial exemption change the work — and the fee. Name your scheme before you compare quotes.

When do I have to register for VAT?

You must register if taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed it in the next 30 days alone. You have 30 days from the end of the month you crossed the threshold. Confirm the current figure on GOV.UK — our review date is 17 July 2026.

Voluntary registration below the threshold can pay if your customers are VAT-registered businesses and you want to reclaim input VAT. It does not pay if your customers are the public and cannot reclaim. An accountant should model both, not default to “always register”.

When are VAT returns due, and must I use software?

File and pay within one month and seven days of your VAT period end. MTD for VAT is live for every VAT-registered business, so returns must go through compatible software — a spreadsheet alone is not enough unless bridging software links it to HMRC.

Most businesses are on calendar quarters. A period ending 31 March is due 7 May; payment must have cleared, not just left your bank. Nil returns are still required. Late filing now uses HMRC’s points-based penalties.

How much do VAT return services cost?

Standalone quarterly VAT returns typically cost £20–£45 per month when bundled with bookkeeping on our editorial benchmarks, or about £200–£500 a year if you keep the books yourself. Flat Rate, partial exemption or more complex schemes are extra.

The usual trap is a cheap company package that excludes VAT. If you are registered, treat the VAT line as part of the real monthly number. Compare three quotes that name the scheme you actually use.

What is the Flat Rate Scheme, and who should skip it?

Flat Rate lets some small businesses apply a sector percentage to turnover instead of reclaiming input VAT in the usual way. It can be simpler. It is often a poor fit if you have large VATable costs. Limited-cost traders use a different percentage — check GOV.UK before you elect.

An accountant who always puts clients on Flat Rate is selling simplicity, not always saving tax. Ask them to show standard vs flat rate on your last four quarters before you switch.

Do I still need an accountant if I use Xero or QuickBooks?

Software files the return; it does not choose the right scheme or catch a miscoded supplier. Many owners file from Xero and still want an accountant to review the VAT return. If your coding is tidy and your scheme is simple, you can file yourself.

MTD means the software must be HMRC-recognised. Partner pricing on the licence is a real saving when it is in the engagement letter. Ask who clicks submit each quarter.

How should I choose a VAT accountant?

Pick a firm that already files MTD VAT on the software you use, then compare the add-on fee as part of the whole monthly number. Check ICAEW, ACCA, AAT or ICAS. Skip anyone who cannot name your scheme.

Partial exemption, TOMS, and reverse charge are specialist. If that is you, say so on the comparison wizard so the match is not a micro-company bookkeeper.

1. Confirm whether you must register — rolling 12-month test, not your year-end
2. Name the scheme (standard, cash, flat rate) on every quote
3. Ask which MTD software files the return
4. Add the VAT line to the company or sole-trader package before you compare